Rwanda — a country rich in critical mineral resources — stands out as a leading East African mining location due to its stability and investor-friendliness. It is set to become a mineral processing centre, aiming to add value to its substantial reserves of tin, tantalum, tungsten, lithium and rare earth elements (REEs).

The country's mining sector has evolved significantly since its modest beginnings in the early 1930s. Today, it is the largest source of export revenue, surpassing tourism. Rwanda is now one of the world's largest producers of the 3Ts — tin, tantalum and tungsten — and extracts gold and niobium, with promising prospects for lithium and REEs. These resources have been one of the main drivers of rapid economic development in recent years.

In 2022, Rwanda emerged as a top global exporter of tungsten, supplying 31% of the world's total, while contributing 14% of global tin exports. The country is also a significant exporter of niobium and tantalum, each accounting for 5% of the global supply.

The country’s abundant mineral resources include cassiterite, coltan, wolfram, peat, gold and nickel, along with other valuable stones such as amphibolite, granites, quartzite, volcanic rocks, clay, sand and gravel.

East Africa is becoming a new frontier for the discovery and exploitation of "technology metals," such as tin, lithium, cobalt and gold. These metals are essential for the production and operation of modern technologies, such as electric vehicles (EVs) and renewable energy systems.

To fully realise the potential of its mineral resources, countries must invest in local processing facilities and create a clear regulatory framework. Rwanda leads the way in the region, outpacing countries like Tanzania and Ethiopia, which face regulatory challenges.

Its role in the global tantalum market is particularly significant. Recent exploration has revealed considerable reserves, including 1.4mn metric tons (mt) of tin, tantalum, and tungsten, 22mn mt of gold and 110mn mt of critical minerals, including REEs, lithium, beryllium, uranium and iron ore, according to the Rwanda Development Board (RDB), the country's inward investment agency. 

In June 2023, during the first European Union Business Forum held in Kigali, the country's capital, the RDB highlighted the need for further investment to add value to the minerals mined in the country. Rwanda already boasts a tin smelter, a gold refinery and a tantalum refinery under construction, but there are significant opportunities to establish additional processing plants for tungsten, lithium and gemstone cutting and polishing. The RDB estimates that at least $50mn is needed to establish these additional processing facilities.

Rwanda has a total economy of $13.3bn, according to the World Bank. According to IMF estimates, in 2023 economic growth surpassed expectations at 8.2% — one of the fastest rates in Africa — with services, construction and post-flood recovery in food crop production as key contributors.

While fiscal consolidation may temporarily dampen growth, a rebound to 7.3% is anticipated in the medium term. Inflation has steadily declined since January 2023 to 4.2% in March 2024, thanks to a slowdown in food prices and core inflation. The current account deficit widened more than expected in 2023, but international reserves remain adequate at about 4.1 months of imports at the end of 2023. External public debt was estimated at 65% of GDP in 2024.

Rwanda’s mineral export revenues have surged dramatically over the past decade, growing from $71mn in 2010 to $1.1bn in 2023. They jumped by 43% between 2022 and 2023. The increase is driven by greater value addition, increased investment in mechanisation, and the strategic implementation of sustainable and responsible mining practices. The government has set an ambitious goal of achieving annual mineral export revenues of $1.5bn by 2024.

The mining sector plays a significant role in Rwanda's economy, contributing around 3% to the national GDP. In the first quarter of 2024, GDP from mining rose to RWF51bn ($39mn), up from RWF48bn ($36.7mn) in the fourth quarter of 2023, marking the highest level recorded, according to Trading Economics.

The sector is also a chief contributor to the national treasury, in 2022, contributing over RWF27bn ($21mn). It has become a significant driver of off-farm job creation and infrastructure development.

Despite exploiting only 30-40% of its mineral potential, Rwanda is committed to improving its extractives sector by embracing modern technology, implementing robust regulatory frameworks, and promoting responsible mining practices.

Rwanda's mineral resources extend beyond traditional metals like tin, tungsten and tantalum to include rare earth elements (REEs), which are increasingly crucial for modern technologies. The ongoing exploration campaign, running from 2023 to 2026 and led by the Rwanda Mines, Petroleum and Gas Board (RMB) — the government agency responsible for regulating the mining, petroleum, and gas sectors — is crucial for identifying and quantifying Rwanda's REE reserves. Preliminary findings have already confirmed the presence of these minerals, positioning the country as a potential key supplier in the global market.

This three-year campaign also aims to establish a detailed estimation of the country’s overall mineral resources, elevating them to the level of inferred resources suitable for attracting potential investors. The exploration efforts cover various types of minerals, with 52 prospective target areas identified for exploration across the country.

One of the most promising developments in Rwanda’s mining sector is the discovery and exploration of lithium, often referred to as the "white gold" of the energy transition. Lithium is crucial for the production of EV batteries and renewable energy storage, positioning Rwanda potentially as a strategic supplier in this emerging global market. The ongoing mineral exploration campaign has confirmed significant lithium deposits in the country.

For example, Trinity Metals, a privately-owned mining company, is actively involved in a lithium exploration project in Rwamagana District, with an investment of RWF3bn ($2.35mn). The drilling project will cost $2.5mn, while the declined tunnel at the entrance of a proposed extraction site will require an additional $1.5mn. The reserves include 10mn mt of ore containing high-grade lithium, along with tin and tantalum.

Moreover, Rio Tinto, one of the world’s largest mining companies, is also exploring lithium in the Southern Province, indicating strong international interest in Rwanda’s lithium potential.

The country is increasingly positioning itself as a key player in the regional automotive supply chain by taking advantage of its abundant lithium deposits, essential for EV batteries. With significant investments in lithium exploration and the establishment of the Volkswagen assembly plant in Kigali, Rwanda is aligning its mineral wealth with its growing automotive industry. 

Rwanda's mining sector operates under a robust regulatory framework promoting transparency, sustainability, and responsible mining practices. The Law on Mining and Quarry Operations, enacted in 2018, governs all activities related to the exploration, extraction, and processing of minerals and quarries in the country. Until January 2024, the RMB has granted over 750 licences, including about 20 mineral exploration licences and 150 mineral mining licences. The RMB oversees regulation and mining licensing, while the Rwanda Development Board negotiates mining licence contracts on behalf of the government.

Rwanda is a member of the International Tin Supply Chain Initiative (iTSCi) programme, which ensures that the origins of minerals can be traced to avoid conflict financing, human rights abuses, and other malpractices such as bribery in mineral supply chains. This mineral tagging and sealing scheme is internationally recognised and underscores Rwanda's commitment to ethical mining practices.

To attract investment, the Rwandan government has implemented various incentives, including a favourable fiscal regime designed to increase profitability within the mining sector. These incentives have played a key role in drawing around 150 mining companies and cooperatives, primarily located in the southern and western regions of the country.

Furthermore, Rwanda is making progress in revising its mineral tax laws to further encourage value addition and beneficiation within the country. In April 2024, a draft law was introduced in parliament seeking to amend the 2013 mineral tax law. The proposed changes aim to promote value addition by introducing differentiated tax rates for processed and unprocessed minerals, thereby discouraging the exportation of raw minerals and incentivising local processing. 

For instance, the new bill proposes a lower tax rate of 0.5% on gold processed within the country, compared to higher rates on unprocessed minerals.

The new bill also seeks to expand the mineral tax base by including minerals such as platinum group metals and other gemstones, which previously went untaxed. Additionally, the bill proposes exemptions for certain minerals that are imported for re-export after processing, further supporting Rwanda’s ambition to become a regional hub for mineral beneficiation.

This aligns with Rwanda's broader strategy under the National Strategy for Transformation (NST2), covering the period from 2024 to 2029, to attract investment in mineral processing and create more jobs within the country. Rwanda aims to double private investment from $2.2bn in 2023 to $4.6bn by 2029, driving economic growth and creating jobs. Export volumes are projected to more than double from $3.5bn to $7.3bn, fuelled by key sectors like agriculture, agro-processing, and mining, with a focus on value-added exports.

In February 2024, Rwanda's mining ambitions received a significant boost when it signed a Memorandum of Understanding with the European Union to collaborate on establishing sustainable raw materials value chains. This partnership could strengthen Rwanda's role in Africa's sustainable development while ensuring robust and sustainable raw materials supply chains for the EU. The agreement could be crucial for the EU in securing the raw materials needed for developing green technologies.

However, the country's mining sector faces significant challenges. These include a shortage of skilled labour and advanced mining technologies, which limit the efficient extraction and processing of minerals. Many operations still rely on artisanal and small-scale methods, leading to lower productivity and reduced recovery rates. Additionally, inadequate infrastructure, such as limited access to reliable transportation and energy sources, further constrains the sector's growth and competitiveness in the global market.

To address these challenges, Rwanda has launched an education initiative targeting the mining sector. This program, based at Rwanda Polytechnic (IPRC Kigali) and the University of Rwanda, is designed to build the technical skills of Mining Engineers and Geoscientists. The initiative aims to foster entrepreneurship, improve the business environment, and make Rwanda's mining sector more attractive to investors. By strengthening the expertise of local professionals, the program seeks to increase efficiency, productivity, and the overall competitiveness of Rwanda’s mining industry.

The Rwandan government — in collaboration with international partners like the EU and Germany's agency for international cooperation GIZ — is also working to improve the traceability of mineral flows, which will enable compliance with international standards. A national mineral traceability system is being developed to support the application of responsible mineral sourcing standards from the EU, the Organisation for Economic Co-operation and Development (OECD) and the International Conference on the Great Lakes Region. By laying the foundations for responsible mineral value chains, Rwanda aims to gain market access and international recognition, while reducing the link between mineral trade and the financing of armed conflict.

Moreover, the Rwandan government has been working with international organisations like GIZ to improve compliance with international mineral sourcing standards, strengthen technical vocational education and training skills, and promote environmentally friendly mining practices. These efforts include the development of a national digital mineral traceability system and the integration of green mining technologies into operations across the country.

Another challenge is illegal mining activities, particularly by landowners who allow unlicensed individuals to carry out mining on their land. On August 8, 2024, the RMB announced a ban on beryllium exports, citing cases of illegal mining and associated unrest and conflicts. Beryllium exports will remain suspended "until further notice" while the RMB conducts a comprehensive review of the reported cases and implements improved export procedures.

Furthermore, as a land-locked country with a small domestic market, Rwanda must deal with significant geographical and infrastructural constraints including high transport and energy costs.
 
Rwanda's determination to fully exploit its mineral potential — particularly in lithium and rare earth elements — positions the country as an emerging leader in the African mining industry. While challenges such as limited financial support and illegal mining continue, the government’s proactive approach — along with its commitment to modernising the sector — suggests a positive outlook for the future. As Rwanda continues to harness its vast mineral wealth, it is on track to achieve its ambitious goal of $1.5bn in annual mineral export revenues, strengthening its role in global mineral supply chains.